across the start of a brand new trading month, october turned out to be a decent one here for the uk market. the ftse posting solid gains. yesterday, it's a little bit of window dressing. it was the core of the periphery where the outperformance was, the likes of italy and spain. that's where the bump higher was. in terms of the sentiment today, we were watching some of the resource stocks. we had china coming out this pmi. this shows the fastest pace in

the pmi. 51.4 up from 51.1 in september. from the stateside data front we're waiting for the latest manufacturing numbers there. if this is stronger than expected, this could cause a kwib around expectations, around marketing. but so far, a cautious start to the european session. we're nudging higher by 0.1% on the benchmark. some individual sectors, this is the early picture for the friday session is autos. we're seeing the pressure. it's the only sector in negative territory. the likes of renault, the worst performer, shedding 3.3%. so an early march lower for the basic resources. not getting that pop on the china data front. we've got some of the major ones moving along as i take a look at it. media stocks are weaker. retail, we are sealing selling in carrefour.

if i can just move along to industrials, which are hitting north banks hsbc, the top performer in the basket. but rbs is the one we're looking at this morning and it is starting out very weak. 3.3%. a move to the down side and a reaction to its earnings today. oil and can gas, p 2% higher. technology is the top performer in the basket. health care, we've got performing 0.25%. but telcos, vodafone, only 1% early on and 0.5% in the overall telco basket. the ftse, let's take a look at the early picture. we've got a slight increase, a modest 21 points. i want to show you rbs in particular. we've been talking about this company all morning. the bank has opened weaker this morning. it's announced plans to sell off

riskier assets into an internal bank. this is the cats cry. on the earnings front, it posed a profit of 438 million pounds over the third rt quarter. but it's now warned of a substantial full year loss because of impairments in the fourth quarter. the overall reaction has been negative. 2.8% lower is how the stock is trading, steve. >> thanks very much, karen. right. we have even more people around the deck. fixed income fund manager rafa julia medal and christopher pinka. are you chris or christopher? >> chris is fine. >> all right. we're talking about banks. obviously you covered the fixed income spaes. how do you see the banks and where are the opportunities? >> yeah. there's still quite a few

opportunities in the banks. spreads have been historically wider since 2008 in the financial space. so they provided a good opportunity. although in recent history, they've been more sort of volatile, so they've had a hard beater risk. as of late, because of the extra regulation which is thought in banks to have more capital. as debt holder, it's a bigger cushion for us to fall back on in the event of default. >> why? >> well, because what the regulators are doing, they're forcing more banks to have more tier one capital, more additional tier one capital. and plus, a bigger office, as well. so as a result of this large capital, it means that the equity holders are probably going to be negative. we heard the other day in europe, they were saying the return on equities is just 9%, but it cost the capitals 10. from an equity perspective, that's really bad. but from a bondholders

perspective, we feel we have a better feel for it now. >> obviously, the narrowing of spreads is something which is brought based. is there any area where there's still further to go on stand out country level sense? >> it's more about the capital yapal structure. some of the peripheral spreads can hike higher. so in between the sort of junky or hybrid sort of boughten equity-like capital. and the senior capital, which could probably widen, as well, as they probably will see that their bonds could become bailingble, they rank with the depositors or we think there will be depositor preference. but in that middle part of the capital structure, most of the areas in particular periphery, we think that's the point which we think there's lots of value. >> do we think we're going to see a lot more hybrid issuance in the banking sector? >> i think they want to.

>> you could get bowed in if the tier 1 capital falls below a certain level. i think the figure is being banded around. the main problem is, who are the natural buyers now? is it going to be the fixed income market or is it equity market? how do people position it in their portfolios. >> you have bond turbulence, anyway, so it's one and the same. >> yeah. it's not all that convertible. >> there are a time a lot of concerns, still. the european banks are still woefully undercapitalized, as well. i think we're going to see a lot more issuance. >> i think, yeah, part of the aqr, which is sort of the new stress tests that we're going to see, they're going to be

faulting more banks to issue more capital. clearly, the european banks still need to delever. they're still the most highly leveraged banks in the sort of western economy. so the u.s. delevered first and the uk, lloyd's did it very well. but the european banks still have quite some way to go. >> do we think this beater is going to continue for this sector? >> i personally don't see how it can ever end. i think it's the high volatility that we're seeing. >> the high relationship it has, the stocks themselves and the banking taper and indeed, the underlying market. >> i think we're going to see it for a while, until they become utility like which is where they're ultimately going to be going. >> how do you see the bank? >> i think it's created a tremendous run for equity investors. i think it's a great play on gdp and the global macro economy. there is still some way to go. and i think the regulatory remains ambiguous. >> i'm going to talk to you

about earnings as a capitalist for the broad performance. >> yeah. the problem with the banking sector is that there's still a large part of the banking sector which don't have any visibility in earnings. and what's really happened, i think, in the last 15, 18 months, post the draghi's comments that we'll do whatever we need to do to save the euro is that the risks in the banking sector are becoming more credit tallized and manageable. they simply couldn't manage expectations in 2009, 2010. as a consequence of that, the risk premium, if you like, that we were asked to pay in equities has now given you fantastic return, but the dilemma you now face is what part of the capital structure is the next issue going to start appearing as a problem? what provision do you need to change? what restructure needs to happen in the european banks? and people are very happy about what's going on in the u.s. because we know we have this interest right environment that's going to be very supportive to the interest rate

sector there. and i think it's interesting about your point about the capital structure. because i think as equity investors, when you look at the banks, you're going to have to start saying right now we know it's not debt. now we know it's a survival issue. can i get a return from this? can i make an investable return long-term as an equity shareholder when i'm buying bbva or i'm buying paribas? is it already in the price? what are my risks going forward? rbs shares, can we get them all? they're now down the best part of 4%. nothing has changed, really, between today and yesterday

apart from a little bit more money being put aside for misselling allocations. down beat numbers by and large, as well. but the point is, i'm quite pleased the market has been through that. it's the second worst performer on the ftse and the third worst on the stoxx 600. >> on another day, we must have been selling it. >> does this make a difference? >> the real worry was they were going to set it aside and the bondholders would have to take huge losses. so i suspect the bonds will be up this morning. i looked here yesterday. >> let's get back to out to helia, who is outside the headquarters. we're seeing the stock tanking

this morning. currently we're down 3.7%. is that what you expected? >> well, i think it's a fair reflection on the fact that not a lot has change, but it's the safest bet. there's been a lot of noise in recent weeks about the market not being capped here if the government wanted to go for a full break-up, not wanting them to kitchen thing everything as people are putting it. and this is the safest bet. steve was talking about a political nudge earlier today. this is a shift of focus. it's a new beginning with regulators with the government. but it's not a huge, substantial change in terms of rbs. they're moving different assets into that noncore condition and turbo charging the exit of those assets. so that's the big change. shares are down. it's not immediately great. results weren't great overall. but what is important is that they're coming out and saying this is going to speed up our

privatization. and critically for shareholders it hopefully means an end of interference for government. that is what has stymied us for the last couple of years with rbs. now, i'm joined now by phillipe, senior credit analyst at hermes. you were talking earlier about this being the safest bet. what do you think that means? i mean, have they done a lot? is there an acceleration of the noncore, selling off of that noncore assets. is that enough to win shareholders over about rbs? >> i think over the medium term, yes. and i think the focus is shifting, as you say, from selling as fast as you can to try to exact more value out of those assets. .i think it's a more material break-up. it's been off the that bank external would have been rather costly. there can have been some benefits that would have come at a very high cost.

and i think the recent story, if you look at mg, rkbc, if you have a bit more time and there is time to sell after that, then it's turned tout make more money. >> well, then isn't it a concern that things like citizens are being fast forwarded? we know that the former finance director of rbs, who has gone over to run citizen wanted more time to build that business up, extract value, looking for an ipo beginning in 2015. that's now going to be brought forward. is it better for shareholders, for taxpayers, that rbs sell things quickly rather than get more money for it? >> actually, in the case of citizen, you're right, it has been imploding a little bit. but it seems to me like a great time. if you think of the average regional banks in the united states trade at something like 1.4 had book value. and citizen, if they attach a value of 1.2, then it probably means something like 250

business point more in common equity of rbs. so i think that's very good for holding. >> and we heard the chief executive today saying they should allay any fears. are you reassured by what they're saying in terms of the balance sheet strength? >> i think so. before they used to say they were targeting 10% of common equity by tend of 2014. now we're talking about 11%. 11% seems to me quite the right number. >> and what about the results for q3 in general? ppi costs going up, as well. >> yeah. i think it's a lot. but these days, even if you run a uk bank, i think you're in a state of permanent restructuring. so there has been an increasing provision to say they were going to boost to 5 billion sterling

and your provision in the fourth quarter. i think it's too high with your provision. >> and phillipe, finally, does this market day of reckoning, is this a new chapter in rbs? is it going to be a more attractive investment for shareholders in the future? >> i think it's possible. we saw the management term. now we saw a good one, so it's time tore stop worrying about that and get on with the business. >> thank you very much, phillipe. i think it's about getting on with it. it's all about now focusing on the 90% of the asset webs not the 10% of the assets and hopefully with a new relationship with regulators and government, it will mean for shareholders this is a commercial business, not just a political football. bank to you, karen. >> helia, thank you for that. the french market has started

out weaker for the session, coming off the highs that we're seeing on market basically above 4,300 points, just a bit lower. air france klm, the early performance is negative. 273% lower. it's demanding an overhaul of air italia before it gives up more capital. the italian group is 25% owned by air france which has until mid november to decide if it wants to participate in a 300 million euro capital increase. the other markets we are seeing a little bit of selling into the cost of periphery in particular. drifting lower 0.25%. we've shed 26 points so far. otherwise, the portuguese market is a little weaker to sh 4%. so 6 to 2 on the index. the portuguese market this year is in positive territory.

edp has posted better than expected profit of 790 million euros in the fourth quarter. had a strong post. brazilian wind units helped bolster its markets. >> not down as some of these others markets. tony writes in, basically pointing out that rosario at leads has done a nice job. i think we've talked about that a bit. i don't want to pick up on that, but i want to ask, talking about the irish banks and saying, what do we think about what we're left with in the irish banking sector? and i say that in reference to

the fact that this is going into the bad bank or some of those assets, pulling new business away from their operations, as well. what are we left with that's interesting? >> the banks have been doing pretty well. it's one of the big european sovereigns. i think in december this year they're looking to exit. they've been able to issue their own sovereign debt. i think some of the banks that they're left with, which is obviously going to to be a contracting economy, meaning that the bank of ireland should be able to become more profitable. it's still a bit of a two-tier country. >> they were driving around so many parts of the city. likes like an oversupply, as well. >> for the manufacturing and the construction industry is starting to pick up again. so i think what's happened is

the economy has contracted. the overseas banks pull out. i've got some short dated bank of ireland and some short dated -- >> i don't know off the top of my head, but we were being the at 4% or 5%. >> i think the interesting question now is from a credit perspective, who are going to be the buyers post distress, if you like, who are going to be the buyers of issue from countries like ireland. what are they demanding? going forward in terms of new issuance, is the credit market the -- irish businesses can look to as a viable, discernible source of revenue or are they going to go back to bank borrowing? the banks themselves are going to be very reserved in the next phase.

do you think there's an appetite going forward? >> i think so. tlavrng r that's banks the banks have pulled out. i think as long as they come at the right price and they can still make that debt issuance work from a return on equity perspective. so it's not going to push up their cost of capital too much, as long as there's some order of window which works for both the company and the market. >> this year, while talking to the prime minister, the key conversation and the conversation we were having was about the cautionary line of credit, whether they decide to offer this and that's the key to confidence in the market whether it's direct play on the banks or border on the sovereign, whether they still remain semi attached to some form of a lifeline or whether they receiver it. which is better for confidence and which is better for market pricing? >> clearly, if they have a quasi link to the government rather

than explicit or implicit guarantee or implicit letter of credit or some sort of indication that the banks are going to be supported by the government, that's going to be much better for pricing for the -- let's look at the banks. i think we've covered that in some detail. let's move on and talk about energy, as well. you've got some plays in the sector, haven't you? >> yeah. i think it's really from a macro viewpoint, really. we feel that the energy that is happening in the u.s. is a messy thing. i think we're only at the beginning of this process, sort of on shore of u.s. business. the cost of doing business for u.s. manufacturing is not much different from doing business overseas. >> but that cost needs to go up, doesn't it, julian? the cost per share is unsustainable from a production cost point of view at the current levels, isn't it? >> it's not oil because, obviously, oil is a ex spongeble

global commodity. and the volumes that are being fould found in the u.s. shale market are so enormous that the price remains very depressed. i think the big issue on u.s. shale and gas prices is how much is the u.s. going to be prepared to export through lng and into the global markets. >> when is that going to happen? we've had a couple of guests over the years talking about something such as gohler, which is the conversion of a time of l&d facilities so we can send oil and gas products out of the united states. when does that export capability become a reality rather than some form of -- equating global prices. >> 2016, 2017. >> and investment is going into this, yeah? >> the investment is absolutely going in. one of the very interesting equity plays on this is the shipping companies, such as

gohler, such as gas log, which are very well placed to actually -- >> and they're around -- you know this, i don't. are there political restraints by the exporters out of the united states? >> it is a politically sensitive issue, although the permits that have been granted so far are giving some encouragement. but there is not going to be a wholesale export because clearly the washington administration recognizes extraordinary gifts. >> and, again, my nebs are probably a sequence out of data. they only produce about 10 million barrels a day so they still have a way to go to make themselves energy independent. have you any plays in the sector? >> not from a point -- you mentioned earlier, which i think the shipping companies are very much in focus for investors now. i think people are staying with the view that this is a long-term investment strategy that you can stay with. but the distribution issues in the u.s. is key because there are -- we've seen the whole keystone conversation.

there is -- there ways around it already. but there are political logjams here. >> it's about a pipe, yes? >> it's the political benchmark about shipping across border and now it's going to be about what they do on the west coast in terms of development and exports because there's a big political issue associated with that. >> we have 30 seconds. >> the main issue from a macro perspective is the possible tapering we're going to see. this rally and the treasury market is a dangerous one. it's all about politics and the fact that i think qe wasn't done because the fed saw it was going on in washington. we had this massive rally in credit and treasuries and actually, really, this energy renaissance we're seeing in the u.s. is going to kick in. >> lovely. bob writes in from nv nevada and says why wouldn't europe have these resources, as well? nice to see you, thank you very

much for your time. the rest of you against stay with us. but we are going to move on and get to the latest in the line of european corporate toes blame the strong euro for a drop in profits. geoffry cut more. >> at best, it will be a flat year for europe's steal industry. sluggish growth in the region and weak prices are taking their toll. the sector has endured several decades of restructuring and lower cost producers in the bric economies have stolen market share. with few remaining european-owned steel businesses like austria's voestapine have moved up the specialty chain. but the firmer euro is doing them few favors. we are delivering roughly 72% currently of our products within the european union. so this is more or less nearly

all euro based. we are affected, on the other hand, at the other roughly 28% of our total sales by the development of the euro/dollar exchange rate and this is currently a problem. even a higher problem than in the past because we do not have just the dollar getting weaker. we have the yen in some months bringing us into a specific situation. so we have some additional pressure also from the japanese currency. >> dr. eaders other headache is europe's partly self-inflicted energy, expensive energy prices. >> it's hard to imagine ma it can get stronger. so in my opinion, if we do not see in the next years a very quick redimensioning of costs in general in europe, of course,

especially including costs of energy, it will be difficult to compete on the dmodty side with countries like ukraine, russia, turkey, all countries in oush neighborhood will be extreme bli difficult if europe does not restructure. >> which is why the company's expansion plans are focused on new operations in china to meet asian demand and a new plan in the u.s. to capitalize on america's lower energy costs. geoff cutmore, cnbc.

it's global aspirations for rbs. as a move, i think government affairs will make it easier to sell. renault is in the red as investors wait for a major announcement from the ceo due to take place in tokyo in the next few minutes. monte depaschi falls to the bottom of the ftse mib after the bank's stock shareholders says it's open to the idea of a merger.

and french strikers, the french president stands firm on his 75% tax plan refusing to allow the club and players off their income tax hook. >> this is squawk realtime. markets in europe have been open for roughly a half an hour. and the stoxx europe 600 is down by 0.2%. it is a cautious start to the trading day, but we finished the month of october with fairly impressive gains. we saw a 4% gain for the dax and the ftse and the cac lagging a little bit. but still seeing modest gains of a little bit more than 2%. i want to show you what the sectors are doing one by one. yesterday we saw the oil ask gas sector underperforming after we saw shell coming out with bag miss. telcos to the upside today, up by 0.9%. utilities and basic resources also doing a little bit better. we've got the chinese pmi for

the month of october at an 18-month high. they were concerns about what the smaller and mid size companies are doing. industrials, travel leisure and food & beverage is moving to the down side. so what is going on with regards to the biggest movers in terms of the individual stocks? renault is off by 3.8%. we've got rbs after we got the unveiling of the new strategy down by almost 374%. it unveiled and internal bad banks so it's not going for the more radical step of formally splitting up the banks complete completely. .mr. osbourn saying on the wires that the rbs reprivatization probably won't be happening before the next elections. now, vodafone is an interesting story this morning because there were press reports out suggesting that at&t is exploring a strategy for a potential takeover deal. that stock is up almost 2%. and third quarter profit rose by

6%. the company says it is on track with its cost cutting targets. >> thanks very much, carolin. a lawmaker for the green party says he met with edward snowden in moscow and meanwhile, the u.s. ambassador says he's making it his priority to rebuild the trust between washington and germany. >> when i stepped off the plane and virtually every speech i've given science then, i've always said my first goal is to rebuild the trust. it's gotten more difficult, but it's not impossible. i've seen a lot in the press about are we partners or are we friends. it is boebl to be both. and it's possible for friends to be disappointed in one another,

to disagree, to have our opinions and to work that through in order to maintain a strong and long-term relationship. and i'm confident that at the end of the day that's what we'll be able to do. >> that's what diplomatic speak sounds like. we have edward with us from the economist. your book was about the untold story of the east and west espionage. but this is west and west espionage. has the story evolved further? >> well, actually, i observed this german outrage with a little bit of executive simple. because one of the things i show in my book was germany was spying to estonia, using the same spy who is spying for the russians. so the real point is that almost every country spies on other countries and bigger countries spy a lot. germany has an electronic intelligence services who cued

up data and analyses it. so i can see where there's this sort of tremendous neurotic outrage in germany because of the history and so on. but the reality is rather different. germany and america are on the same spy when it comes to spying, but they also spy on each other. >> edward snowden has been offered a job by the russians and also one from the germans. whatever happened to life after whistle blowing where you're about to be never employed ever again. >> i think edward snowden is having a tough time because he has to live in moscow. >> he would disagree with you. >> i'm not sure. people in moscow tend to be cueing up outside the american embassy to go and live there. and he insists he's not a

traitor and he hasn't given his tough to the russians. the americans don't believe him. they're still doing damage control about what he's done. >> is he going to go and work with the germans, the latest is that he's going to try and help them get to the bottom of this spying issue. >> i think saying we would like to let you come here and work for the government, the more you get inside germany, the closer you see the links are between germany and america on this. they cooperate on electronic intelligence. >> i don't necessarily agree with your characterization of the germans being neurotic. i'm a german myself. i think we have a point here in being outraged about what the u.s. did --

but germany spies on other countries. but we've got all these -- >> what is your moral policy? why is it wrong for america to spy on germany, but the not okay for -- it's okay for germany to spy on one of its nato allies, estonia. >> sorry. that's not germany versus the u.s. >> that he is they're small so it makes it all right? >> it is smaller, not as important for the world scene. but my point is that some of the german companies have a right to be outraged and angry at the u.s. they've got very, very good competitive technology that they're working with and if there'ses spee nash on an industrial level, they've got a right to be angry. >> they should be angry about the chinese espionage on germany which is colossal and we've seen no signs so far that the americans are spying on german companies for the competitive advantage of american companies.

you see a lot of that in the chinese state espionage services spying on all sorts of western countries, stealing their services and taking them to china and trying to replicate them. it's distracted from the serious stuff which is about cyber crime, which is huge. >> i completely agree with that point. you know, i think we're losing the fundamental issue around commercial espionage. the china espionage, which is a key concern, the german government are explicitly not criticizing the china administration. they are refusing to join the western government in lobbying china against that. and that's another fundamental inconsistency in the whole argument. >> and german companies like seemans, they're not good at doing this other security. there are other properties walking out and turning to

china. and the german government isn't making such a fuss about it. >> cyber crime is something that we have to take seriously now. we literally have people trying to get into our systems all the time. and we know that and we can track that. and, you know, you have to have all sorts of provisions and lockdown toes make sure that doesn't happen. >> can we get a copy of your book up again on screen. is that mr. putin who is behind the graphics? >> that is, indeed. in the bottom left-hand corner is the famous anna chapman. >> tell me why russia is the center of your book. are the russians still the great spy martins of old? >> yeah.

the russians are really good at spying. we are not very good and we don't think about it very much. >> herein lies the issue. russia's exports to europe jumped 17% in october. we can be as indignant as we like, but while the russians are providing 38% of our gas and energy reserves, we have to hold back a little bit from the righteous indignation. >> their business model is bust now because we're getting lmg from all over the world. we have shale gas coming. >> they're getting a third of our energy from russia. >> we've built a resilient gas grid in europe, which means it's far harder to country one country off without supplying another. >> this goes on and on and on. the u.s. spying on its allies, russia and china spying on everyone, the british spying on everyone presumably, as well. this doesn't stop --

>> but it does get harder. >> spying is like prostitution. it's a very old institution. the difference is that some countries get on a moral high ground and don't exist -- >> there is an evolution. people came out of this not looking very great with some of those tech companies, the likes of google, facebook, yahoo!. some knew they were being spied on. but you have to imagine the steps they're going to take. >> this is a huge blunder, but a real blunder the nsa has made is not realizing the american strength is a soft part of its companies and they damaged that by degrading the cryptography. that was a mafs goal by the nsa. i do think they've thought through the consequences. >> does the nsa continue to spy on its allies?

>> absolutely. all countries spy on all countries. they just pretend they don't. >> thank you very much indeed for your time. i will probably be a willing reader of your book. i love all that kind of stuff. "deception" is the name of the book. edward lucas is the author. >> we're having a twitter debate this afternoon on the nsa. people can follow the exciting debate. we also have a lead on snowden and what the nsa needs to do to change what america has got wrong and what it's got right. and let's move on. perhaps as important as spying is soccer. coming up on the show, the french president hollande is playing hardball we are live outside the big french football club.

sony shares have taken a

bashing after slashing its earnings outlook. the company's film business wag a major drag, turning in a 17.8 billion loss. head online for more details. the ipad has been a great cash cow for apple. but toous tech giant's hold of the tablet market is starting to loosen with the likes of samsung and aces providing strong competition. get the breakdown of the numbers on cnbc.com. and good news from china. official pmi data shows manufacturing activity is at its highest level in 18 months. so what does this say about the second largest economy in the world? find out what analysts are saying on our website and remember, you can also follow us on twitter@cnbc world. >> right. we have had various questions in. and one is very specific, so let's get that. we've got our guest hosts with

us, julian and chris. julian, the question about your company, very basic and to the point question. how are you going to get paid in curtis on and can there be a fiscal resolution in kurdistan. >> we are paid in kurdistan. >> how do you get paid is wa he's asking? we are currently trucking, we are at third quarter imf the middle of this week and we will make 3 to $400 million of revenue. >> how about the politics in the region? and the longer term situation is we have now built a pipeline directly from kurdistan to turkey. >> do you have security issues with that pipeline? >> no. kurdistan is a very remarkable place and the pipeline is buried -- >> relations with turkey are

improving, but what about iraq? >> that relations with turkey are very important. the relationship within federal iraq between kurdistan and baghdad has been fractured. but we are confident that we are going to be exporting our oil and gas through turkey in a way that is absolutely consistent with the constitution of 2006. >> okay. let's move on. thanks for answering those questions. the french president francois hollande has told the nation's club they would not be exempt from a 75% top tier tax. so the biggest football clubs are ul in arms. does that include new castle and arsenal, stephane, or are they just -- >> yeah, french -- will have to pay more than 40 million euros, 44 exactly as part of this 75% tax fund very high salaries. francois hollande confirmed yesterday after meeting with the head of the french football association and the leaders of the six largest clubs of the country that the tax will be implemented on football clubs,

although they were claiming given the special nature of their business, they would need a special regime. they argue that they have a lot of salaries over $1 million euros, which is a lot compared to the five of their clubs. they argue that it could jeopardize their economic situation and that ultimately they wouldn't be able to keep in france the star players, to keep them in the french championship. they also argue that it could destabilize the broadcasters which are the main source of financing for the football club. yesterday, the head of the football federation was quite disappointed after the meeting with francois hollande. sfwlt we have tried to show that this tax is not fair, but the president was inflexible. he said that since the tax had been voted upon, it could not be rearranged. but he's listened to us and that's very important. we never know what the future holds, but tonight he wouldn't budge and decided to apply the tax.

>> so they've decided to keep their strike warning for the 30th of november. we're quite used to strikes being on fsn perhaps. but not in the football sector. it's the first time in 40 years they will be on strike in the company. 80% of the people believe the strike is unjustified and 60% believe that the tax should be paid by the players themselves and not by the club. >> because arguably they have the money, right? the president on germany's banking regulator is bullish on the company's institutions. this despite a report from twc earlier in the week which shows germany has the highest amount of nonperforming loans in europe. a whooping 179 billion euros worth. and as it caught up for an exclusive interview with the president and asked her weather the changes in regulation will create a level playing field for

europe's bank. >> i think what we get is one of the advantage and i have strong expectation for the assessment in that respect is that we get to understand that we have the same attitude towards valuation, that we get harmonized valuation because we will have supervisors from all over the eurozone looking into different banks. so we're get ago bid out of my children get -- the new children. debate? that we'll get on day one. we will clearly, even when we start, have the situation with banks that run under ifrs and other banks are working under national gaps. and we will have national implementation of law which over time might be narrowing down. but let's face it, europe is

like germany is. it is not one single country where everything is equalling each and every country. so we will always be faced with kind of secreton in looking at different topics. but over time, i think this is a giant chance to come to a harmoniz harmonized xrpgz and that we establish trust in the european banking system. and i'm saying european, i know it's the eurozone for the time being. there's always hope. how much more efficient can a pan european supervisor really be compared to a national one, because a national one, of course, knows its banks a lot better. are we taking the step in the right direction? >> i firmly believe it's a step into the right direction. if we don't make the mistake in saying now it's all european and

in this teller in frankfurt, we have all the answers. but that's not how it is now designed. the most of the work will be done in so-called joint supervisory teams, which means teams led by the ecb, where the national supervisors are forming a large part of the team. so you will -- can expect for a german bank to have german and french and spanish and italian supervisors working within the team and with the head of the ecb. so i think you have still -- you are considering that you need to have a a lot of national knowledge and how things are run. let's face it, we will have also to struggle with all the different languages. i would absolutely be at a loss in read ago document in greek as would the sum of our -- of

colleagues when they have to go to a german bank where normally documents are in german. so we will have to have a system and that, i think, is the advantage that kek draw on the expectations of all national supervisors and challenge each other. >> well, i was going to save something until the end of the show, which is this november thing which is pretty much a charity for cross state cancer in the -- >> what are you talking about? >> what are you saving until the end of the hoe? there's no way you'll get me to wear one of those, ladies. >> come on, we're doing it. >> come on. >> you can't really move your mouth. >> hey, look at that. >> good to see you. >> you can't move your top lip. this is ridiculous. >> you speak like an englishman. have you ever had a moustache? >> when i was younger. >> it's guaranteed to age someone, isn't it, and make them

look like idiots in some cases. i have to say, ladies, it's quite alluring. quite worrying. >> how about these eyebrows? >> i think you have to trim yours, karen. >> enough of that. good luck on anyone who is growing a beard or moustache for november. if you catch me in this, i'm sure i'm good for a couple of pence. let's move on. i understand for a professional risk why you didn't want to do so. we've mentioned kurdistan so we're not going to do that. but let's talk about the shift in global monetary policy. i think something has changed, chris. >> yeah. there was a statement that which came out yesterday talking about the temporary liquidity swap environments being moved to the standard process. and it's the same as what we've seen in qen states, is that what started out as emergency monetary measures to deal with the 2008 liquidity monetary

crisis are now becoming more mainstream monetary policy measures. thefb taken on board by politicians, as well as central banks, in other words. i think we have to recognize that the idea that we've got an end of tapering or what have you is that monetary policy is now being explicitly used as a means of getting to your optimal economic policy. it's no longer an emergency process. it's been embedded because of it. in we you took, you know, something that was a system that worked and changed it with these rules so the traditional monetary policy is yet to be evasive. >> the policy doesn't work because you've put in place these emergency measure that's you've now made permanent. we have to royce that the liquidity environment has changed and investors have to deal with it.

>> for the a corporate, we assist here looking at opportunities to raise debt. we have said we're going to put debt on the balance sheet next year. and you look at where emerging market focused companies are raising leverage and it's a very attractive environment. >> julian, it's been pleasant to speak to you today. give me regards to tony. he's always welcome to come on. >> i will extend that invitation. >> julian, nice to see you, cfo of general genel energy and chris, always good to see you, senior partner. we have a november website story on our dotcom and from kirn who is looking very dapper.

you're watching "worldwide exchange." i'm ross westgate. it's a lackluster trade for the first day of november after wall street had the strongest month of the year. the euro falls again, hitting the lowest level in 16 months. renault shares are shifting into lower gear as the carmaker's partner nissan cut its profit outlook by 20%. investors question rbs's bad banks. the uk government says it will make it easier to sell its stake when shares fall as the lender says it wil